120+ more*Quotes generated for Insurify users from New Jersey within the last 10 days. Last updated on August 26, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users from New Jersey within the last 10 days. Last updated on August 26, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Certified financial education instructor
Published in USA Today, TIME, Forbes, and Business Insider
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
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25 years teaching risk management and insurance course
Former commercial lines underwriter
Updated
Coverage | Minimum Requirement in New Jersey |
|---|---|
| Property damage liability | $5,000 per accident |
| Personal injury protection (PIP) | $15,000 per person, per accident |
While a bare-bones Basic Policy meets New Jersey car insurance requirements, it provides only property damage liability and personal injury protection (PIP).[1] It also includes a limited right to sue option.
New Jersey is a no-fault state. This means if you cause an accident and injure another driver and their passengers — or a bicyclist or pedestrian — they’ll file a claim with their insurer.
But if you cause severe injuries, the other party may still be able to sue you under certain conditions. For that reason, most New Jersey drivers choose the added liability protection of the Standard Policy.[2]
A Basic Policy that meets New Jersey car insurance requirements doesn’t include bodily injury liability insurance as a standard component. But you can add an optional $10,000 in coverage for multiple people per accident.
In contrast, a Standard Policy includes bodily injury liability insurance with limits as low as $35,000 per person and $70,000 per accident.
New Jersey’s Basic Policy includes property damage liability insurance with a limit of $5,000 per accident.
The Standard Policy includes property damage liability insurance with a coverage limit as low as $25,000 per accident.
A Basic Policy that meets New Jersey car insurance requirements doesn’t include uninsured/underinsured motorist coverage.
New Jersey’s Standard Policy requires drivers to have uninsured/underinsured motorist coverage.[3] These limits can’t exceed your liability limits.
Both the Basic Policy and the Standard Policy in New Jersey include at least $15,000 per person, per accident in personal injury protection (PIP).
For certain injuries, these plans offer coverage up to $250,000, including for:
Permanent or significant brain injury
Spinal cord injury or disfigurement
Medically necessary treatment for other permanent or significant injuries
Liability policies average $182/mo.
Although a Basic Policy meets New Jersey’s car insurance requirements, the coverage it offers isn’t sufficient for most drivers.
New Jersey’s Department of Banking and Insurance recommends this bare-bones policy only for “those with few family responsibilities and few real assets.” For this reason, the department considers a Basic Policy most suitable for young drivers.
Most drivers benefit from carrying both bodily injury and property damage liability coverage at higher limits. For example, the average bodily injury claim in 2024 was $28,278, according to the Insurance Information Institute (Triple-I), while the average property damage claim was $6,770.
Uninsured/underinsured motorist coverage in NJ is also crucial. In New Jersey, 14.1% of drivers were uninsured in 2023, according to Triple-I data. This means you have a significant risk of being involved in an accident with a driver who lacks adequate coverage.
Drivers who finance or lease a vehicle typically must also carry collision coverage and comprehensive coverage.
The table below breaks down recommended New Jersey car insurance coverage amounts.
Coverage Type | Recommendation |
|---|---|
| Bodily injury liability | $100,000 per person, $300,000 per accident |
| Property damage liability | $100,000 per accident |
| Personal injury protection | $250,000 limit |
| Comprehensive and collision | $750 standard deductible |
| Uninsured/underinsured motorist | $95,000–$500,000 (can’t exceed your liability limits) |
While New Jersey doesn’t require comprehensive and collision coverage, you may need to carry these if you finance or lease your vehicle. More than 25% of the Garden State’s driving population has an auto loan or lease, according to Insurify data.
In New Jersey, only the Basic Policy comes with a limited right to sue. If you purchase a Standard Policy, you’ll choose between a limited and unlimited right to sue option.
Limited: You can’t sue someone who caused an accident for your pain and suffering unless you sustain certain permanent injuries. These include loss of a body part, significant disfigurement, and a permanent injury, among others.
Unlimited: You retain the right to sue someone who caused an accident for pain and suffering and any injury.
New Jersey is one of the most expensive states in the country for car insurance. On average, New Jersey car insurance costs $182 per month for liability-only coverage and $256 per month for full coverage.
Several reasons account for these high rates. The state has one of the nation’s highest population densities, according to the U.S. Census Bureau, and some of the worst traffic congestion, particularly in the greater New York metropolitan area.
New Jersey’s car insurance requirements also affect insurance rates. Because New Jersey is a no-fault state and requires PIP, you must file an injury claim with your own insurer, even if the other driver is at fault.
No-fault states typically have higher insurance rates.
Insurance Company | Average Monthly Quote |
|---|---|
| NJM | $119 |
| Plymouth Rock | $132 |
| CSAA | $137 |
| Allstate | $170 |
| Direct Auto | $173 |
| Bristol West | $180 |
| Progressive | $180 |
| Mercury | $219 |
| GEICO | $221 |
| Liberty Mutual | $263 |
| State Farm | $278 |
| Travelers | $359 |
In New Jersey, certain Federal Medicaid recipients are eligible for the Special Automobile Insurance Policy (SAIP). This coverage coordinates with Medicaid benefits and pays for treatment immediately after an accident.
It also provides up to $250,000 for serious brain and spinal cord injuries and includes a $10,000 death benefit.[4]
In addition to this state program, New Jersey insurers must offer a discount to drivers who complete an approved defensive driving course.[5]
Driving without insurance in New Jersey is illegal. A first offense may result in the following penalties:[6]
A fine of $300 to $1,000
Community service, as determined by the court
Suspension of your driving privileges for up to one year
Additional offenses bring more serious penalties:
A fine of up to $5,000
Up to 14 days in jail
30 days of community service
Suspension of your driving privileges for up to two years
Car insurance premiums also typically increase after you’re caught driving without insurance.
Insurify partners with 120+ top insurers for real-time quotes
Meeting New Jersey’s car insurance requirements is important, but it may not be enough for many drivers. Consider additional coverages, including:
Collision coverage: New Jersey is the most densely populated state in the country. This means more drivers on the road, particularly for commuters into New York City. More drivers create more opportunities for accidents. Collision insurance pays to repair your car after a crash.
Comprehensive coverage: Each year, New Jersey is at risk of strong tropical storms, hurricanes, and severe winter weather. Comprehensive insurance covers flood, wind, and hail damage, as well as damage from falling tree limbs.
Uninsured/underinsured motorist (UM/UIM) coverage: Nearly one in every seven drivers in New Jersey are uninsured. A policy with UM/UIM coverage can provide extra protection against drivers without adequate insurance, with a $500 deductible.
Read more about car insurance requirements in New Jersey to help you get the best insurance coverage for you.
Yes. Someone can drive your car if they’re not on your insurance in New Jersey. This applies as long as you’ve given them permission and your policy doesn’t explicitly prohibit unnamed drivers.
Yes. It’s illegal to not have car insurance in New Jersey. At a minimum, you need to purchase a Basic Policy, which offers minimal coverage and includes only property damage liability and personal injury protection.
Only drivers with limited family responsibilities and few assets should consider buying a Basic Policy in New Jersey. New Jersey’s Department of Banking and Insurance specifically suggests this policy for young drivers just entering the workforce.
The Basic Policy in New Jersey is a lower-cost option with minimal coverage. It’s best suited for drivers with few financial assets. The Standard Policy offers higher coverage limits, more liability protection, and uninsured/underinsured motorist coverage.
The limited right to sue in New Jersey is a component of a car insurance policy that restricts you from suing another driver for your pain and suffering after an accident. You may sue only for specific permanent or significant injuries, loss of a fetus, or death, according to the New Jersey Department of Banking and Insurance.
To prove you have car insurance in New Jersey, you need either a paper or digital insurance identification card. You must keep the card in your vehicle or be able to present a digital version before an inspection, after an accident, when stopped for a traffic violation, and during a spot check with a police officer. New Jersey has strict standards regarding the size of the physical card, the cardstock used, and what information it includes.
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Certified financial education instructor
Published in USA Today, TIME, Forbes, and Business Insider
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
25 years teaching risk management and insurance course
Former commercial lines underwriter
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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